It is you who thinks that loose monetary policy is a necessary component for economic growth. I stand with the Austrians in claiming that the exact oposite is the case, and that excessive monetary growth lead to malinvestment. Our real estate debacle is proof enough of that.
Further, there is plenty of evidence around the world that economic growth is possible while maintaining stable monetary values. In fact, we became the world's leading economic power while being on the gold standard.
And as the FED monitizes that Real estate debt that went into inflating real estate values it is returning to the case economy where we are seeing soaring escalations in commodities prices, which leads inevitably to soaring downstream production prices.
Yes, you would choke off all economic development just in case there might be inflation.
Woe unto us if such policies were adopted. Go to Austria and live. Delta is ready when you are.
I like the job the Fed has been doing. Most people do, because if your stocks aren't growing more rapidly than inflation you're in a heap of trouble:
